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Thursday, October 23, 2008

Edge 262: Daniel Kahneman: "Two Big Things Happening in Psychology Today"

Edge 262 - October 23, 2008

(16,000 words)

http://www.edge.org

This online EDGE edition with streaming video is available at:
http://www.edge.org/documents/archive/edge262.html

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THE THIRD CULTURE
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There's new technology emerging from behavioral economics and we are just starting to make use of that. I thought the input of psychology into economics was finished but clearly it's not!

TWO BIG THINGS HAPPENING IN PSYCHOLOGY TODAY
A TALK BY DANIEL KAHNEMAN

EDGE Video

DANIEL KAHNEMAN, a psychologist at Princeton University, is the recipient of the 2002 Nobel Prize in Economics for his pioneering work integrating insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty. Daniel Kahneman's Edge Bio page: http://www.edge.org/3rd_culture/bios/kahneman.html

Danny Hillis, Richard Thaler, Nathan Myhrvold, Elon Musk, France LeClerc, Salar Kamangar, Anne Treisman, Sendhil Mullainathan, Jeff Bezos, Sean Parker

Class 4
A Short Course In Behavioral Economics

DANIEL KAHNEMAN: I want to tell you a bit of straight psychology that I find very exciting, that I found more exciting this year than I had before, and that in some ways is changing my view about a lot of things in psychology.

There are two big things happening in psychology today. One, of course, is everything that's got to do with the brain, and that's dominating psychology. But there is something else that is happening, which started out from a methodological innovation as a way to study memory, and we've always known, that's the idea of the notion of association of ideas, which has been around for 350 years at least.

We know about how associations work because we have one thought, and when it leads to another windows and doors and things like that, or white and black and we have our ideas of associations, and it's always been recognized as important and interesting. But our view of how associations work has been changed in a profound way by a technical innovation, which is something that happens a great deal in psychology and I suppose in all sciences.

This innovation is the following: If, for example, you hear the word "sick", there are few associations that come to mind. But there are a number of other things that you can do, that are little more refined. You can present words, and measure the amount of time that it takes people to read the words. Or you can measure words and non-words, and the task is to decide whether they're a set of letters, or a word, or a non-word, and it's the ease with which words are recognized as words as against non-words. I'll begin by focusing on reaction time, because that's the simplest one.

Here's how it works: after the presentation of the word "sick", the number of words that are affected to which you react differently than you reacted before is enormous. You will be faster, obviously, to "ill", and to "death", and so on, but it will be "hospital", and it will be "nurse", and it will be "doctor", and all of a sudden you've got a huge range of things to which the response is influenced by just presenting that one thing. We find that associative networks that we have in our minds appear to be a lot richer than it did before.

But that's not the only thing that happens. It turns out that the kinds of associations that are built in are a lot richer than we thought. When I want to make an impression while giving a talk, I put the word "vomit" on the screen. Just imagine the word "vomit" on the screen. I point out we know from experiments what happens to people within the first second or two that the word "vomit" is present. In the first place there is that enormous range of changes in the associative structure, and the readiness as well. ...

[...MORE]

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THE REALITY CLUB
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On "Two Big Things Happening In Psychology Today:
A Talk By Daniel Kahneman"

W. Daniel Hillis, Daniel Kahneman, Nathan Myhrvold, Richard Thaler

DANIEL KAHNEMAN: Let me postulate a few things:

1) I know my date of birth. Priming will not change my mind about it.
2) I do not believe there is anything anyone could do within the law to make me vote for a Republican this November.

So yes, of course there are limits to priming effects and to all forms of influence. My point was not that priming can make a person do anything at all. It was that priming has much more influence than people think it could have. Furthermore, people are generally not aware of having been influenced. [MORE...]

NATHAN MYHRVOLD: Priming as Danny presents it is quite a strange phenomenon:

* Omnipresent-happening all the time, all around you.

* Impossible to guard against.

* Equally hard to detect-in yourself anyway, but also in others (unless you have a control group and can do the statistics, as one does in an experiment).

* Very important to understanding human perception.

* Also very important in terms of real world impact on thinking and decisions, with large real-world consequences.

I'm pretty sure Danny said each of these, one way or another. Or maybe I was just primed to draw these conclusions myself, but I think they are accurate.

If find that set of characteristics to be fascinating. However, they are also strange, and perhaps a bit alarming if you really take them seriously. It very naturally begs a set of other questions. [...MORE]

[...MORE]

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IN THE NEWS
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THE GUARDIAN
Comment Is Free

ALL ABOARD THE ATHEIST BUS CAMPAIGN
It's real, it's happening: you can sponsor the first atheist advert on a bus - and Richard Dawkins will match your money

By Ariane Sherine

[bus photo caption: The godless move in mysterious ways: what the atheist bus campaign's advert will look like.]

The atheist bus campaign launches today thanks to Comment is free readers. Because of your enthusiastic response to the idea of a reassuring God-free advert being used to counter religious advertising, the slogan "There's probably no God. Now stop worrying and enjoy your life" could now become an ad campaign on London buses - and leading secularists have jumped on board to help us raise the money.

The British Humanist Association will be administering all donations to the campaign, and Professor Richard Dawkins, bestselling author of The God Delusion, has generously agreed to match all contributions up to a maximum of £5,500, giving us a total of £11,000 if we raise the full amount. This will be enough to fund two sets of atheist adverts on 30 London buses for four weeks.

If the buses hit the road, this will be the UK's first ever atheist advertising campaign. It's an exciting development, which I never expected when I first proposed the idea on Cif in June. Back then, I was just keen to counter the religious ads running on public transport, which featured a URL to a website telling non-Christians they would spend "all eternity in torment in hell", burning in "a lake of fire". ...

[...MORE]

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THE NEW YORK TIMES
The DNA Age - Taking a Peek at the Experts' Genetic Secrets
By Amy Harmon

Is Esther Dyson, the technology venture capitalist who is training to be an astronaut, genetically predisposed to a major heart attack?
Does Steven Pinker, the prominent psychologist and author, have a gene variant that raises his risk of Alzheimer's, which his grandmother suffered from, to greater than 50 percent?...

...On Monday, they may learn the answers to these and other questions - and, if all goes according to plan, so will everyone else who cares to visit a public Web site, www.personalgenomes.org. The three are among the first 10 volunteers in the Personal Genome Project, a study at Harvard University Medical School aimed at challenging the conventional wisdom that the secrets of our genes are best kept to ourselves. ...

...The project is as much a social experiment as a scientific one. "We don't yet know the consequences of having one's genome out in the open," said George M. Church, a human geneticist at Harvard who is the project's leader and one of its subjects. "But it's worth exploring." ...

...J. Craig Venter, a pioneer in human genome sequencing, said his nonprofit institute planned to sequence several dozen human genomes by the end of next year and to deposit the information in the public domain along with phenotype information in a model similar to that of the PGP. He said he had already heard from thousands of volunteers.

...And Sergey Brin, the co-founder of Google, recently revealed on his blog that he learned he has a considerably higher than average risk of developing Parkinson's disease, which was diagnosed in his mother several years ago. (Mr. Brin is the husband of Anne Wojcicki, a co-founder of 23 and Me.)
...
Further Reading on Edge: "Life: What A Concept!" [8.27.07] (George Church, J. Craig Venter et al); "George Church: Constructive Biology" [6.26.06]

[...MORE]

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THE ATLANTIC
Why Washington's crusade against swearing on the airwaves is f*cked up
By Steven Pinker

A WORD IS an arbitrary label that's the foundation of linguistics. But many people think otherwise. They believe in word magic: that uttering a spell, incantation, curse, or prayer can change the world. Don't snicker: Would you ever say "Nothing has gone wrong yet" without looking for wood to knock?

Swearing is another kind of word magic. People believe, contrary to logic, that certain words can corrupt the moral order-that piss and Shit! and fucking are dangerous in a way that pee and Shoot! and freakin' are not. This quirk in our psychology lies in the ability of taboo words to activate primitive emotional circuits in the brain.

My interest in swearing is (I swear) scientific. But swearing is not just a puzzle in cognitive neuroscience. It has figured in the most-famous free-speech cases of the past century, from Ulysses and Lady Chatterley to those of Lenny Bruce and George Carlin. Over the decades, the courts have steadily driven government censors into a precarious redoubt. In 1978, the Supreme Court, ruling on a daytime broadcast of Carlin's "Filthy Words" monologue, allowed the Federal Communications Commission to regulate "indecency" on broadcast radio and television during the hours when children were likely to be listening. The rationale, based on rather quaint notions of childhood and of modern media, was that over-the-air broadcasts are uninvited intruders into the home and can expose children to indecent language, harming their psychological and moral development.

[...MORE]

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THE NEW YORK TIMES
The Downturn's Upside
By Nicholas D. Kristof

Income doesn't have much to do with happiness. Americans haven't become any happier as they have prospered in the last half-century. And winning the lottery doesn't make people happier in the long term.

This is called the Easterlin Paradox: Once they have met their basic needs, people don't become happier as they become richer. In recent years, new research has undermined the Easterlin Paradox, yet it's still true that happiness has less to do with money than with friendships and finding meaning in a cause larger than oneself.

"There's pretty good evidence that money doesn't matter much for how you feel moment to moment," said Alan Krueger, a Princeton University economist who is conducting extensive research on happiness. "What seems to matter much more is having good friends and family, and time to spend on social activities."
The big exception to all this is people who lose their jobs or homes, and the new president should act immediately to help them. Professor Krueger argues that for these people, the losses are greater than we have generally realized, for their losses are not only monetary but also the erosion of self-esteem and friendships as they are wrenched out of social networks that enrich their lives (and help them find new jobs). And for those who lose health insurance, a medical or dental problem is enormously stressful, even life-threatening.

[...MORE]

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NATURE

The Cranial Endoskeleton of Tiktaalik Roseae
By Jason P. Downs, Edward B. Daeschler, Farish A. Jenkins & Neil H. Shubin

Among the morphological changes that occurred during the 'fish-to-tetrapod' transition was a marked reorganization of the cranial endoskeleton. Details of this transition, including the sequence of character acquisition, have not been evident from the fossil record. Here we describe the braincase, palatoquadrate and branchial skeleton of Tiktaalik roseae, the Late Devonian sarcopterygian fish most closely related to tetrapods. Although retaining a primitive configuration in many respects, the cranial endoskeleton of T. roseae shares derived features with tetrapods such as a large basal articulation and a flat, horizontally oriented entopterygoid. Other features in T. roseae, like the short, straight hyomandibula, show morphology intermediate between the condition observed in more primitive fish and that observed in tetrapods. The combination of characters in T. roseae helps to resolve the relative timing of modifications in the cranial endoskeleton. The sequence of modifications suggests changes in head mobility and intracranial kinesis that have ramifications for the origin of vertebrate terrestriality.

[...MORE]

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THE NEW YORK TIMES
Fish Fossil Yields Anatomical Clues on How Animals of the Sea Made It to Land
By John Noble Wilford

Fish Fossil Yields Anatomical Clues on How Animals of the Sea Made It to Land
By John Noble Wilford


In a new study of a fossil fish that lived 375 million years ago, scientists are finding striking evidence of the intermediate steps by which some marine vertebrates evolved into animals that walked on land. ...

...Several skeletons of the fish were excavated four years ago on Ellesmere Island, in the Nunavut Territory of Canada, 700 miles above the Arctic Circle, by a team led by Neil H. Shubin, an evolutionary biologist at the University of Chicago and the Field Museum, and Ted Daeschler of the Academy of Natural Sciences. The Devonian Age rocks containing the fossils indicated that the fishapod lived in shallow waters of a warm climate. It may have made brief forays on land. ...

...Dr. Shubin said Tiktaalik was "still on the fish end of things, but it neatly fills a morphological gap and helps to resolve the relative timing of this complex transition."

For example, fish have no neck but "we see a mobile neck developing for the first time in Tiktaalik," Dr. Shubin said.

"When feeding, fish orient themselves by swimming, which is fine in deep water, but not for an animal whose body is relatively fixed, as on the bottom of shallow water or on land," he added. "Then a flexible neck is important."

[...MORE]

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BLOGGINGHEADS.TV
John Horgan & David Berreby

[...MORE]

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This online EDGE edition with streaming video is available at:
http://www.edge.org/documents/archive/edge262.html
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Edge Foundation, Inc. is a nonprofit private operating foundation under Section 501(c)(3) of the Internal Revenue Code.
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EDGE

John Brockman, Editor and Publisher
Russell Weinberger, Associate Publisher
Karla Taylor, Editorial Assistant

Copyright (c) 2008 by EDGE Foundation, Inc.
All Rights Reserved.

Published by EDGE Foundation, Inc.,
5 East 59th Street, New York, NY 10022

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Thursday, October 9, 2008

Edge 260: A Short Course In Behavioral Economics - Class 2

Edge 260 - October 9, 2008

(14,500 words)

http://www.edge.org

This online EDGE edition with graphics and video is available at:
http://www.edge.org/documents/archive/edge260.html

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THE THIRD CULTURE
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A SHORT COURSE IN BEHAVIORAL ECONOMICS

At a minimum, what we're saying is that in every market where there is now required written disclosure, you have to give the same information electronically and we think intelligently how best to do that. In a sentence that's the nature of the proposal. —Richard Thaler

                             CLASS 2:
                RICHARD THALER & SENDHIL MULLAINATHAN

Jeff Bezos, Nathan Myhrvold, Salar Kamangar, Daniel Kahneman, Danny Hillis,
Paul Romer, Elon Musk, Sean Parker

Edge Master Class 2008
Richard Thaler, Sendhil Mullainathan, Daniel Kahneman
Sonoma, CA, July 25-27, 2008

AN EDGE SPECIAL PROJECT

Permilink: http://www.edge.org/3rd_culture/thaler_sendhil08/class2.html

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IN THE NEWS
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FRANKFURTER ALLGEMEINE ZEITUNG
Feuilleton
ASSUME THE FETAL POSITION!
By Frank Schirrmacher
http://www.edge.org/documents/archive/edge260.html#faz


NEW YORK REVIEW OF BOOKS
STRUGGLE FOR THE ISLANDS
By Freeman Dyson
http://www.edge.org/documents/archive/edge260.html#nyrb

STRATEGY & BUSINESS
TEA AND EMPATHY WITH DANIEL GOLEMAN
By Lawrence M. Fisher
http://www.edge.org/documents/archive/edge260.html#sb

FINANCIAL TIMES
THE SHORT VIEW: POLITICAL RISK
By John Authers, Investment Editor
http://www.edge.org/documents/archive/edge260.html#ft

NEW SCIENTIST
ANYONS: THE REAL BREAKTHROUGH QUANTUM COMPUTING NEEDS?
Don Monroe
http://www.edge.org/documents/archive/edge260.html#ns

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This online EDGE edition with graphics and video is available at:
http://www.edge.org/documents/archive/edge260.html

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Edge Foundation, Inc. is a nonprofit private operating foundation under Section 501(c)(3) of the Internal Revenue Code.
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EDGE

John Brockman, Editor and Publisher
Russell Weinberger, Associate Publisher
Karla Taylor, Editorial Assistant

Copyright (c) 2008 by EDGE Foundation, Inc.
All Rights Reserved.

Published by EDGE Foundation, Inc.,
5 East 59th Street, New York, NY 10022


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Friday, October 3, 2008

Edge 259: Thaler, Mullainathan, Kahneman: A Short Course In Behavioral Economics

Edge 259 - October 3, 2008

(17,100 words)

http://www.edge.org

This online EDGE edition with graphics and video is available at:
http://www.edge.org/documents/archive/edge259.html

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THE THIRD CULTURE
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A SHORT COURSE IN BEHAVIORAL ECONOMICS
EDGE Master Class 2008
Sonoma, CA, July 25-27, 2008

RICHARD THALER, SENDHIL MULLAINATHAN, DANIEL KAHNEMAN

The Master Class with text and video is comprised of six classes which is being published one per week for the next six weeks. Class One is published in today's EDGE edition. The PERMALINK URL is: http://www.edge.org/3rd_culture/thaler_sendhil08/thaler_sendhil_index.html

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A year ago, EDGE convened its first "Master Class" in Napa, California, in which psychologist and Nobel Laureate Daniel Kahneman taught a 9-hour course: "A Short Course On Thinking About Thinking". Among the attendees were a "who's who" of the new global business culture.

This year, to continue the conversation, we invited Richard Thaler, the father of behavioral economics, to organize and lead the class: "A Short Course On Behavioral Economics". Thaler, in turn, invited Harvard economist and former student Sendhil Mullainathan, as well as Daniel Kahneman, to teach the class with him.

Beginning October 1st, EDGE will begin to publish on a weekly basis the text, selected video highlights, and photos of the six classes comprising "A Short Course In Behavioral Economics". This EDGE edition includes the Table of Contents, Introduction By Daniel Kahneman, Summary of Day 1 By Nathan Myhrvold, Summary of Day 2 By George Dyson; Link to the Photo Gallery; and Link to Class One.

-John Brockman, Editor


RICHARD H. THALER is the father of behavioral economics-the study of how thinking and emotions affect individual economic decisions and the behavior of markets. He investigates the implications of relaxing the standard economic assumption that everyone in the economy is rational and selfish, instead entertaining the possibility that some of the agents in the economy are sometimes human. Thaler is Director of the Center for Decision Research at the University of Chicago Graduate School of Business. He is coauthor (with Cass Sunstein) of Nudge: Improving Decisions About Health, Wealth, and Happiness.

SENDHIL MULLAINATHAN, a Professor of Economics at Harvard, a recipient of a MacArthur Foundation "genius grant", conducts research on development economics, behavioral economics, and corporate finance. His work concerns creating a psychology of people to improve poverty alleviation programs in developing countries. He is Executive Director of Ideas 42, Institute of Quantitative Social Science, Harvard University.

DANIEL KAHNEMAN is Eugene Higgins Professor of Psychology, Princeton University, and Professor of Public Affairs, Woodrow Wilson School of Public and International Affairs. He is winner of the 2002 Nobel Prize in Economic Sciences for his pioneering work integrating insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty.

PARTICIPANTS: Jeff Bezos, Founder, Amazon.com; John Brockman, Edge Foundation, Inc.; Max Brockman, Brockman, Inc.; George Dyson, Science Historian; Author, Darwin Among the Machines; W. Daniel Hillis, Computer Scientist; Cofounder, Applied Minds; Author, The Pattern on the Stone; Daniel Kahneman, Psychologist; Nobel Laureate, Princeton University; Salar Kamangar, Google; France LeClerc, Marketing Professor; Katinka Matson, Edge Foundation, Inc.; Sendhil Mullainathan, Professor of Economics, Harvard University; Executive Director, Ideas 42, Institute of Quantitative Social Science; Elon Musk, Physicist; Founder, Tesla Motors, SpaceX; Nathan Myhrvold, Physicist; Founder, Intellectual Venture, LLC; Event Photographer; Sean Parker, The Founders Fund; Cofounder: Napster, Plaxo, Facebook; Paul Romer, Economist, Stanford; Richard Thaler, Behavioral Economist, Director of the Center for Decision Research, University of Chicago Graduate School of Business; coauthor of Nudge; Anne Treisman, Psychologist, Princeton University; Evan Williams, Founder, Blogger, Twitter.

http://www.edge.org/documents/archive/edge259.html#shortcourse
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NOTABLE QUOTE
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"Globalization creates interlocking fragility, while reducing volatility and giving the appearance of stability. In other words it creates devastating Black Swans. We have never lived before under the threat of a global collapse. Financial Institutions have been merging into a smaller number of very large banks. Almost all banks are interrelated. So the financial ecology is swelling into gigantic, incestuous, bureaucratic banks - when one fails, they all fall. The increased concentration among banks seems to have the effect of making financial crisis less likely, but when they happen they are more global in scale and hit us very hard. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur Š.I shiver at the thought."

- Nassim Taleb, The Black Swan (2006)

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IN THE NEWS
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NEW SCIENTIST
EDITORIAL: WHEN THE NUMBERS DON'T ADD UP
http://www.edge.org/documents/archive/edge259.html#nstaleb

BOSTON GLOBE
WHAT ABOUT AUSTERITY?
By Juan Enriquez and Jorge Dominguez
http://www.edge.org/documents/archive/edge259.html#enriquez

THE NEW YORK TIMES
PRIVATE COMPANY LAUNCHES ITS ROCKET INTO ORBIT
By John Schwartz
http://www.edge.org/documents/archive/edge259.html#nytmusk

YOU TUBE
ELON MUSK'S SPACEX SUCCESSFULLY LAUNCHES FALCON 1
http://www.edge.org/documents/archive/edge259.html#yt

BOSTON GLOBE
HIDDEN HISTORIES
By Jonathan Gottschall
http://www.edge.org/documents/archive/edge259.html#globe

BLOGGINGHEADS TV
John Horgan & George Johnson
http://www.edge.org/documents/archive/edge259.html#bh.928

THE OBSERVER
THE NEW SAGE OF WALL STREET
Profile: Nassim Nicholas Taleb
Edward Helmore
http://www.edge.org/documents/archive/edge259.html#observer

THE COLBERT REPORT
Nicholas Carr
http://www.edge.org/documents/archive/edge259.html#colbert

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This online EDGE edition with graphics and video is available at:
http://www.edge.org/documents/archive/edge259.html

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Edge Foundation, Inc. is a nonprofit private operating foundation under Section 501(c)(3) of the Internal Revenue Code.
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EDGE

John Brockman, Editor and Publisher
Russell Weinberger, Associate Publisher
Karla Taylor, Editorial Assistant

Copyright (c) 2008 by EDGE Foundation, Inc.
All Rights Reserved.

Published by EDGE Foundation, Inc.,
5 East 59th Street, New York, NY 10022

----------------------------------------------------
EDGE Newsbytes: http://www.edge.org/newsbytes.html
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Thursday, September 25, 2008

Edge 258: Nassim Taleb: "The Fourth Quadrant"

Edge 258 - September 25, 2008

(5,150 words)

http://www.edge.org

This online EDGE edition is available at:
http://www.edge.org/documents/archive/edge258.html

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THE THIRD CULTURE
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ECONOMIC DIS-EQUILIBRIUM
Can You Have Your House And Spend It Too?
By George Dyson

George Dyson writes: "Readers of Nassim Taleb's The Fourth Quadrant may enjoy the following piece on fraud-resistant financial instruments of the 13th century—progenitors of a multitude of derivatives that are plaguing us today." ...

...The breakthrough was in money being duplicated: the King gathered real gold and silver into the treasury through the Exchequer, with the tally given in return attesting to the credit of the holder who could enter into trade, manufacturing, or other ventures, eventually producing real wealth with nothing more than a notched wooden stick. So what's the problem? Aren't we just passing around digital versions of the tallies we've been using for almost one thousand years? Aren't mortgages, whether prime or sub-prime, just a modern version of paying for houses with fraud-resistant sticks? ...

http://www.edge.org/documents/archive/edge258.html#dysong

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THE REALITY CLUB
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Jaron Lanier & George Dyson
On Nassim Taleb's "The Fourth Quadrant: A Map of the Limits of Statistics"


GEORGE DYSON: ...What to do now? I'd prefer less Paulson, and more Newton. In the 17th century, English coinage had become widely debased, much as our system of financial instruments has become debased today. In 1696, Sir Isaac Newton was appointed Warden of the Mint, with authority to prosecute counterfeiters, who were not only hung, but drawn and quartered. This, accompanied by a systematic recoinage, worked.

JARON LANIER: This is a superb piece and I hope it is widely read and taken to heart in Wall Street, Silicon Valley, and Washington. All these centers of power and creativity are drowning in illusions brought about by thunderous misuses of statistics that have become implacably seductive only with the recent availability of vast, connected computer resources.

Edge.org has become the most dramatic point of contact between the critics and supporters of the fallacies Taleb elucidates. ...

http://www.edge.org/documents/archive/edge258.html#rc

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IN THE NEWS
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BLOGGINGHEADS TV
Sean Carroll & Jenifer Ouellette
http://www.edge.org/documents/archive/edge258.html#bh

ECONOMIC TIMES
Enlightened Pursuit Of Pleasure
By Vithal C Nadkarni
http://www.edge.org/documents/archive/edge258.html#etimes

NEWSWEEK
When Atheists Attack
By Sam Harris
http://www.edge.org/documents/archive/edge258.html#harris

GAWKER
What We Need More Of Is Science
Scientists Explain Why People Vote For Republicans
http://www.edge.org/documents/archive/edge258.html#gawker

SEEKING ALPHA
Managing Risk: A Probability Model
http://www.edge.org/documents/archive/edge258.html#alpha

DESERET NEWS — SALT LAKE CITY
Gps Units, Internet Helping Little Dogies Get Along
http://www.edge.org/documents/archive/edge258.html#deseret

PITTSBURGH POST-GAZETTE
Hardwired Conservatives
Compiled by Greg Victor
http://www.edge.org/documents/archive/edge258.html#pittsburgh

THE NEW YORK TIMES
Technology Doesn't Dumb Us Down. It Frees Our Minds.
By Damon Darlin
http://www.edge.org/documents/archive/edge258.html#nytdarlin

THE ECONOMIST
User-Generated Science
Web 2.0 tools are beginning to change the shape of scientific debate
http://www.edge.org/documents/archive/edge258.html#economist

THE GUARDIAN
Turkish Court Bans Richard Dawkins Website
By Riazat Butt
http://www.edge.org/documents/archive/edge258.html#guardianturkey

NEWSWEEK
Is Morality Natural?
By Marc D. Hauser
http://www.edge.org/documents/archive/edge258.html#mdh

FLORIDA TREND
Darwin, Einstein, and Five Challenges for Florida
By Juan Enriquez
http://www.edge.org/documents/archive/edge258.html#enriquez

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This online EDGE edition is available at:
http://www.edge.org/documents/archive/edge258.html
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Edge Foundation, Inc. is a nonprofit private operating foundation under Section 501(c)(3) of the Internal Revenue Code.
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EDGE

John Brockman, Editor and Publisher
Russell Weinberger, Associate Publisher
Karla Taylor, Editorial Assistant

Copyright (c) 2008 by EDGE Foundation, Inc.
All Rights Reserved.

Published by EDGE Foundation, Inc.,
5 East 59th Street, New York, NY 10022

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Monday, September 15, 2008

Edge 257: Nassim Taleb - "The Fourth Quadrant"

Edge 257 - September 15, 2008

(7,950 words)

http://www.edge.org

This online EDGE edition is available at:
http://www.edge.org/documents/archive/edge257.html

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THE THIRD CULTURE
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"Statistical and applied probabilistic knowledge is the core of knowledge; statistics is what tells you if something is true, false, or merely anecdotal; it is the "logic of science"; it is the instrument of risk-taking; it is the applied tools of epistemology; you can't be a modern intellectual and not think probabilistically - but... let's not be suckers. The problem is much more complicated than it seems to the casual, mechanistic user who picked it up in graduate school. Statistics can fool you. In fact it is fooling your government right now. It can even bankrupt the system (let's face it: use of probabilistic methods for the estimation of risks did just blow up the banking system). "

THE FOURTH QUADRANT: A MAP OF THE LIMITS OF STATISTICS
By Nassim Nicholas Taleb

An Edge Original Essay

Introduction

When Nassim Taleb talks about the limits of statistics, he becomes outraged. "My outrage," he says, "is aimed at the scientist-charlatan putting society at risk using statistical methods. This is similar to iatrogenics, the study of the doctor putting the patient at risk." As a researcher in probability, he has some credibility. In 2006, using FNMA and bank risk managers as his prime perpetrators, he wrote the following:

"The government-sponsored institution Fannie Mae, when I look at its risks, seems to be sitting on a barrel of dynamite, vulnerable to the slightest hiccup. But not to worry: their large staff of scientists deemed these events 'unlikely.' "

In the following Edge original essay, Taleb continues his examination of Black Swans, the highly improbable and unpredictable events that have massive impact. He claims that those who are putting society at risk are "no true statisticians", merely people using statistics either without understanding them, or in a self-serving manner. "The current subprime crisis did wonders to help me drill my point about the limits of statistically driven claims," he says.

Taleb, looking at the cataclysmic situation facing financial institutions today, points out that "the banking system, betting against Black Swans, has lost over 1 Trillion dollars (so far), more than was ever made in the history of banking".
But, as he points out, there is also good news.

"We can identify where the danger zone is located, which I call "the fourth quadrant", and show it on a map with more or less clear boundaries. A map is a useful thing because you know where you are safe and where your knowledge is questionable. So I drew for the Edge readers a tableau showing the boundaries where statistics works well and where it is questionable or unreliable. Now once you identify where the danger zone is, where your knowledge is no longer valid, you can easily make some policy rules: how to conduct yourself in that fourth quadrant; what to avoid."

-John Brockman

NASSIM NICHOLAS TALEB, essayist and former mathematical trader, is Distinguished Professor of Risk Engineering at New York University's Polytechnic Institute. He is the author of Fooled by Randomness and the international bestseller The Black Swan.

PERMALINK: http://www.edge.org/3rd_culture/taleb08/taleb08_index.html

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IN THE NEWS
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DER SPIEGEL
"Was halten Sie für wahr, ohne es beweisen zu können?"
By John Brockman
http://www.edge.org/documents/archive/edge257.html#spiegel

THE NEW YORK TIMES
No Laughing Matter
By Judith Warner
http://www.edge.org/documents/archive/edge257.html#nyt

FRANKFURTER ALLGEMEINE ZEITUNG
Amazons Lesegerät Kindle
Das Buch, das aus dem Äther kam
Von Hubert Spiegel
http://www.edge.org/documents/archive/edge257.html#faz

NATIONAL REVIEW ONLINE
The Corner
BY John Derbyshire
http://www.edge.org/documents/archive/edge257.html#nro

THE GUARDIAN
Tuesday memo: The road to the bridge to nowhere that wasn't there
By Oliver Burkeman
http://www.edge.org/documents/archive/edge257.html#guardian

THE MALTA INDEPENDENT
J'accuse: The meaning of life
by Jacques René Zammit
http://www.edge.org/documents/archive/edge257.html#malta

LAS VEGAS SUN
It's not the issues that likely make up many minds
By J. Patrick Coolican
http://www.edge.org/documents/archive/edge257.html#vegas

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This online EDGE edition is available at:
http://www.edge.org/documents/archive/edge257.html
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Edge Foundation, Inc. is a nonprofit private operating foundation under Section 501(c)(3) of the Internal Revenue Code.
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EDGE

John Brockman, Editor and Publisher
Russell Weinberger, Associate Publisher
Karla Taylor, Editorial Assistant

Copyright (c) 2008 by EDGE Foundation, Inc.
All Rights Reserved.

Published by EDGE Foundation, Inc.,
5 East 59th Street, New York, NY 10022

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Friday, August 22, 2008

Edge 255: Clay Shirky: "Gin, Television, and Cognitive Surplus"

Edge 255 - August 21, 2008

(6,340 words)

http://www.edge.org

This online EDGE edition with links and streaming video is available at:
http://www.edge.org/documents/archive/edge255.html

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THE THIRD CULTURE
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GIN, TELEVISION, AND COGNITIVE SURPLUS (VIDEO)
A Talk by Clay Shirky

And this is the other thing about the size of the cognitive surplus we're talking about. It's so large that even a small change could have huge ramifications. Let's say that everything stays 99 percent the same, that people watch 99 percent as much television as they used to, but 1 percent of that is carved out for producing and for sharing. The Internet-connected population watches roughly a trillion hours of TV a year. That's about five times the size of the annual U.S. consumption. One per cent of thatÝ is 98 Wikipedia projects per year worth of participation.

I think that's going to be a big deal. Don't you?

[...MORE]

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IN THE NEWS
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SAN FRANCISCO CHRONICLE
Campaign observers: Time is ripe for Obama to step up his game
By Carla Marinucci

... At the Saddleback forum with Pastor Rick Warren on Saturday in San Diego, the Republican presidential candidate delivered on-the-money messages and answers so effective they were "scary to me," said George Lakoff, a renowned author and UC Berkeley linguistics professor who has studied how the human brain absorbs and processes messages. ...


[...MORE]
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ABC NEWS
Party Time: From Dreams And Delusions To Wars And Wiretapping
By John Allen Paulos

...Thinking about the genesis and consequences of the Iraq War and the recently passed Foreign Intelligence Surveillance Act (FISA) that authorizes wholesale wiretapping, I recalled a relevant party game I once wrote about. The game, described by philosopher Daniel C. Dennett in his book "Consciousness Explained," is a variant of the familiar childhood game requiring that one try to determine by means of Yes or No questions a secretly chosen number between one and one million.  ...

[...MORE]

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SCIENCE & SPIRIT
Daniel Dennett's Darwinian Mind: An Interview with a 'Dangerous' Man
By Chris Floyd

Dennett has famously called Darwinism a "universal acid," cutting through every aspect of science, culture, religion, art and human thought. "The question is," he writes in Darwin's Dangerous Idea, "what does it leave behind? I have tried to show that once it passes through everything, we are left with stronger, sounder versions of our most important ideas. Some of the traditional details perish, and some of these are losses to be regretted, but...what remains is more than enough to build on." ...

[...MORE]

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THE NEW YORK TIMES
Together Again In Different Time Zones
By John Parales

David Byrne and Brian Eno were the songwriter and producer on the most radical albums by Talking Heads, and they collaborated on a 1981 album, "My Life in the Bush of Ghosts." Now, 27 years later, they have reunited to make their second duo album, "Everything That Happens Will Happen Today." It is being released digitally on Aug. 18 via everythingthathappens.com, a month later on major commercial download sites and, as soon as it can be manufactured and distributed, as a physical CD. ...

[...MORE]

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THE GUARDIAN
The Religion Of Politics
By Andrew Brown

...It's a commonplace that to call yourself an atheist in the US is to render yourself unelectable. Richard Dawkins' agent, John Brockman, told me once that he would never identify as an atheist, even though he is one. The last 29 years have been terrible for American believers in reason and progress. ...

[...MORE]

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WALL STREET JOURNAL
Secondary Sources: Credit Crisis, Authoritarian Fed, Nudges

More on Nudges: Writing for the Financial Times, Cass Sunstein and Richard Thaler, who wrote a book on nudging people to make better choices, look at political proposals that are backed by their findings. "It is not surprising that policy teams for Barack Obama, the U.S. Democratic presidential candidate, and David Cameron, the U.K.'s Conservative party leader, have shown an interest in nudge-like solutions to social problems. ...

[...MORE]

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FINANCIAL TIMES
The Dramatic Effect Of A Firm Nudge
By Cass Sunstein and Richard Thaler

In the past three decades, psychologists and behavioural economists have learnt that people's choices can be dramatically affected by subtle features of social situations. For example, inertia turns out to be a powerful force. If people's magazine subscriptions are automatically renewed, they renew a lot more than if they have to send in a renewal form. Moreover, people are influenced by how problems are framed. If told that salami is "90 per cent fat-free" they are far more likely to buy salami than if they are told it is "10 per cent fat". ...

[...MORE]

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This online EDGE edition with links and streaming video is available at:
http://www.edge.org/documents/archive/edge255.html

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Edge Foundation, Inc. is a nonprofit private operating foundation under Section 501(c)(3) of the Internal Revenue Code.
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EDGE

John Brockman, Editor and Publisher
Russell Weinberger, Associate Publisher
Karla Taylor, Editorial Assistant

Copyright (c) 2008 by EDGE Foundation, Inc.
All Rights Reserved.

Published by EDGE Foundation, Inc.,
5 East 59th Street, New York, NY 10022


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Thursday, August 7, 2008

Edge 253: Edge Master Class 08: A Short Course In Behavioral Economics - Thaler, Mullainathan, Kahenman

Edge 253 - August 7, 2008

http://www.edge.org

(1,070 words)

This online EDGE edition is available at:
http://www.edge.org/documents/archive/edge253.html

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EDGE FEATURE
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"Retreating to the luxury of Sonoma to discuss economic theory in mid-2008 conveys images of Fiddling while Rome Burns. Do the architects of Microsoft, Amazon, Google, PayPal, and Facebook have anything to teach the behavioral economists-and anything to learn? So what? What's new?? As it turns out, all kinds of things are new." -George Dyson

A SHORT COURSE IN BEHAVIORAL ECONOMICS
Edge Master Class 08
Richard Thaler, Sendhil Mullainathan, Daniel Kahneman
Gaige House, Glen Ellen, CA. July 25-27, 2008

AN EDGE SPECIAL PROJECT

RICHARD H. THALER is considered to be one of the founders of behavioral economics-the study of how thinking and emotions affect individual economic decisions and the behavior of markets. He investigates the implications of relaxing the standard economic assumption that everyone in the economy is rational and selfish, instead entertaining the possibility that some of the agents in the economy are sometimes human. Thaler is Director of the Center for Decision Research at the University of Chicago Graduate School of Business. He is coauthor (with Cass Sunstein) of Nudge: Improving Decisions About Health, Wealth, and Happiness.

SENDHIL MULLAINATHAN, a Professor of Economics at Harvard, is a recipient of a MacArthur Foundation "genius grant" and conducts research on development economics, behavioral economics, and corporate finance. His work concerns creating a psychology of people to improve poverty alleviation programs in developing countries. He Executive Director of Ideas 42, Institute of Quantitative Social Science, Harvard University.

DANIEL KAHNEMAN is Eugene Higgins Professor of Psychology, Princeton University, and Professor of Public Affairs, Woodrow Wilson School of Public and International Affairs. He is winner of the 2002 Nobel Prize in Economic Sciences for his pioneering work integrating insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty.

ATTENDEES: Jeff Bezos, Founder, Amazon.com; John Brockman, Edge Foundation, Inc.; Max Brockman, Brockman, Inc.; George Dyson, Science Historian; Author, Darwin Among the Machines; W. Daniel Hillis, Computer Scientist; Cofounder, Applied Minds; Author, The Pattern on the Stone; Daniel Kahneman, Psychologist; Nobel Laureate, Princeton University; Salar Kamangar, Google; France LeClerc; Katinka Matson, Edge Foundation, Inc.; Sendhil Mullainathan, Professor of Economics, Harvard University; Executive Director, Ideas 42, Institute of Quantitative Social Science; Elon Musk, Physicist; Founder, Telsa Motors, SpaceX; Nathan Myhrvold, Physicist; Founder, Intellectual Venture, LLC; Event Photographer; Sean Parker, The Founders Fund; Cofounder: Napster, Plaxo, Facebook; Paul Romer, Economist, Stanford; Karla Taylor, Edge Foundation, Inc.; Richard Thaler, Behavioral Economist, Director of the Center for Decision Research, University of Chicago Graduate School of Business; coauthor of Nudge; Anne Treisman, Psychologist, Princeton University; Evan Williams, Founder, Blogger, Twitter

INTRODUCTION

This edition of Edge is a preliminary report of the second annual Edge "Master Class," which occurred July 25-27 in Sonoma, which was followed on July 28th by a San Francisco dinner.

Below we present a summary of the Master Class by Nathan Myhrvold (Day 1) and George Dyson (Day 2) as well as some spirited exchanges among the attendees regarding the reports. Also, you will find the photo galleries of both the Master Class and the dinner. ...

[More]

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PHOTO GALLERY
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SAN FRANCISCO SCIENCE DINNER 08-PHOTO GALLERY
Kokkari Estiatorio, July 28, 2008

Anne Anderson, former Editor, Nature Genetics ; Chris Anderson, Editor, Wired; Author, The Long Tail; W. Brian Arthur, Economist, External Professor, Santa Fe Institute; Yves Behar, Industrial Designer, Fuseproject; Lera Boroditsky, Psychologist, Stanford; Stewart Brand, Long Now Foundation; Author, How Buildings Learn; Larry Brilliant, Director, Google.org; John Brockman, Edge Foundation, Inc.; Max Brockman, Brockman, Inc.; Daniel Kahneman, Psychologist, Nobel Laureate, Princeton University; Drew Endy, Genomics Researcher, MIT; Sunnie Evers; Salar Kamangar, Google; Kevin Kelly, Editor-At-Large, Wired; Author, New Rules for the New Economy; Heather Kowalski, J. Craig Venter Institute; Brian Knutson, Neuroscientist, Stanford University; Jaron Lanier, Computer Scientist and Musician; George Lakoff, Cognitive Scientist, Rockridge Institute, Berkeley; Author, The Political Mind; John Markoff, Technology Correspondent, New York Times; Katinka Matson, Edge Foundation, Inc.; Sendhil Mullainathan, Professor of Economics, Harvard University; Executive Director, Ideas 42, Institute of Quantitative Social Science; Erling Norrby, Virologist, Royal Swedish Academy of Sciences; Larry Page, Cofounder, Google; Sean Parker, Founders Fund; Cofounder: Napster, Plaxo, Facebook; David Pescovitz, Cofounding Editor, BoingBoing.Net; Ryan Phelan, Founder, DNA Direct; Stanley Prusiner, Neurologist, Biochemist, and Nobel Laureate, UCSF Medical School; Lisa Randall, Theoretical Physicist, Harvard; Author, Warped Passages; Paul Romer, Economist, Stanford University; Frank Sulloway, Visiting scholar, Institute of Personality and Social Research, Berkeley, Author, Born to Rebel; Leonard Susskind, Theoretical Physicist, Stanford; Author, The Black Hole War; Karla Taylor, Edge Foundation, Inc.; Richard Thaler, Behavioral Economist, Chicago; Coauthor, Nudge; J. Craig Venter, Human Genomics Researcher; Founder, Synthetic Genomics; Author, A Life Decoded; Jimmy Wales, Founder, Wikipedia

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Look, this is science. Belief isn't an option. -Daniel Kahneman

FIRST DAY REPORT-EDGE MASTER CLASS 08
By Nathan Myhrvold

DR. NATHAN MYHRVOLD is CEO and managing director of Intellectual Ventures, a private entrepreneurial firm. Before Intellectual Ventures, Dr. Myhrvold spent 14 years at Microsoft Corporation. In addition to working directly for Bill Gates, he founded Microsoft Research and served as Chief Technology Officer.

The recent Edge event on behavioral economics was a great success. Here is a report on the first day.

Over the course of the last few years we've been treated to quite a few expositions of behavioral economics-probably a dozen popular books seek to explain some aspect of the field. This isn't the place for a full summary but the gist is pretty simple. Classical economics has studied a society of creatures that Richard Thaler, an economist at University of Chicago dubs the "Econ". Econs are rather superhuman in some ways-they do everything by optimizing utility functions, paragons of bounded rationality. Behavioral economics is about understanding how real live Humans differ from Econs.

In previous reading, and an Edge event last year I learned the most prominent differences between Econs and Humans. Humans, as it turns out, are not always bounded rational-they can be downright irrational. Thaler likes to say that Humans are like Homer Simpson, Econs are like Mr Spock. This is a great start, but to have any substance in economics one has to understand that in the context of economic situations. Humans make a number of systematic deviations from the Econ ideal, and behavioral economics has categorized a few of these. So, for example, we humans fear loss more than we love gain. Humans care about how a question is put to them-propositions which an Econ would instantly recognize as mathematically equivalent seem different to Humans and they behave differently.

Daniel Kahneman, a Nobel laureate for his work in behavioral economics told us about priming-how a subtle influence radically shifts how people act. So, in one experiment people are asked to fill out a survey. In the corner of the room is a computer, with a screen saver running. That's it-nothing overt, just a background image in the room. If the screen saver shows pictures of money, the survey answers are radically different. Danny went through example after example like this where occurred. The first impulse one has in hearing this is no, this can't be the case. People can't be that easily and subconsciously influenced. You don't want to believe it. But Danny in his professorial way says "Look, this is science. Belief isn't an option". Repeated randomized trials confirm the results. Get over it. ...
[More]

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There's new technology emerging from behavioral economics and we are just starting to make use of that. I thought the input of psychology into economics was finished but clearly it's not!
-Daniel Kahneman

SECOND DAY REPORT-EDGE MASTER CLASS 08
By George Dyson

GEORGE DYSON, a historian among futurists, is the author Baidarka; Project Orion; and Darwin Among the Machines

The weekend master class on behavioral economics was productive in unexpected ways, and a lot of good ideas and thoughts about implementing them were exchanged.

Day 2 (Sunday) opened with a session led by Sendhil Mullainathan, followed by a final wrap-up discussion before we adjourned at noon. Elon Musk, Evan Williams, and Nathan Myhrvold had departed early. In the absence of Nathan's high-resolution record, a brief summary, with editorial comments, is given here.

"I refuse to accept however, the stupidity of the Stock Exchange boys, as an explanation of the trend of stocks," wrote John von Neumann to Stanislaw Ulam, on December 9, 1939. "Those boys are stupid alright, but there must be an explanation of what happens, which makes no use of this fact." This question led von Neumann (with the help of Oskar Morgenstern) to his monumental Theory of Games and Economic Behavior, a precise mathematical structure demonstrating that a reliable economy can be constructed out of unreliable parts.

The von Neumann and Morgenstern approach (developed further by von Neumann's subsequent Probabilistic Logics and the Synthesis of Reliable Organisms From Unreliable Components) assumes that human unreliability and irrationality (by no means excluded from their model) will, in the aggregate, be filtered out. In the real world, however, irrational behavior (including the "stupidity of the stock exchange boys") is not completely filtered out. Daniel Kahneman, Richard Thaler, Sendhil Mullainathan, and their colleagues are developing an updated theory of games and economic behavior that does make use of this fact.

Sendhil Mullainathan opened the first hour, on the subject of scarcity, by repeating the first day's question: what is it that prevents the fruit vendors (who borrow their working capital daily at high interest) from saving their way out of recurring debt? According to Sendhil, many vendors do manage to escape, but a core group remain trapped.

Sendhil shows a graph with $$ on the X-axis and Temptation on the Y-axis. The curve starts out flat and then ascends steeply upward before leveling off. The dangerous area is the steep slope when a person begins to acquire disposable income and meets rapidly increasing temptations. "To understand the behavior you have to understand the scale." Thaler interjects: "It's a mental accounting problem-but I think everything is a mental accounting problem." All human beings are subject to temptation, but the consequences are higher for the poor. Conclusion: temptation is a regressive tax.

Paul Romer notes that the temptation of time is a progressive tax, since time, unlike money, is evenly distributed, and wealthy people, no matter how well supplied with money, believe they have less spare time. Bottom line: the effects of temptation do not scale with income.

How best to intervene? Daniel Kahneman notes: "Some cultures have solved that problem... there seems to be a cultural solution." Sendhil, whose field research may soon have some answers, believes that lending at lower interest rates may help but will not solve the problem, and adds: "It would be better for the microfinanciers to come in and offer money at the same rate as the existing lenders, and then make the payoff in some other ways." The problem is the chronic effects of poverty, not the lending institutions (or lack thereof). ....

[More]

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THE REALITY CLUB

Comments on The EDGE Master Class 08:

W. Daniel Hillis, Daniel Kahneman, Nathan Myhrvold, Richard Thaler, Daniel Kahneman, Nathan Myhrvold

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W. DANIEL HILLIS

Just one more minor observation.

Dick Thaler assumed that we already understood and accepted the standard models economic discussion making. When you think about it, it is very flattering-he assumed that we had internalized the standard models to such a degree that we needed to be talked out of them.

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DANIEL KAHNEMAN

Quick reply to Nathan on priming-I believe that the comparison of priming with the curiosities of visual illusions sells it short.

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NATHAN MYHRVOLD

One reply to Danny Kahneman's reply about optical illusions and priming...

After reading your response, I still wonder if the optical illusion analogy isn't quite apt. I say "wonder" because I don't really know and it would require more thinking-and probably some experiments-to really tell.

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RICHARD THALER

Nathan, lots of good questions here, except the last one. Being with you for 36 hours was enough to not be surprised that you are still pushing the debate! Danny is really the right one to have this debate with but I am not sure your questions have good answers. For example, we have no idea what percentage of the time we are fooled by optical illusions. Presumably the answer is a small number, but how would we know?

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DANIEL KAHNEMAN

I have no problems with Nathan's discussion of illusions and the Necker cube-both appear in early chapters in what I have been writing. Indeed, illusions have something in common with priming effects and with most of mental life: the processes that determine them are not represented in consciousness. As Nathan suspected, my objection to the comparison of priming to illusions related to their importance. Illusions do not play a very important role in the modern study of perception, whereas priming is, I believe, critical to understanding how the mind works.

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NATHAN MYHRVOLD

Well, I am going to sound like I was primed by the recent X files movie, but Danny, I want to believe!

Nevertheless it is not easy to believe it. Despite your having primed me, I'm just not getting it. So while I believe you that it does work on me, in this particular instance it seems to be failing me. So I have a couple more questions.

[MORE]

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This online EDGE edition is available at:
http://www.edge.org/documents/archive/edge253.html
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Edge Foundation, Inc. is a nonprofit private operating foundation under
Section 501(c)(3) of the Internal Revenue Code.
----------------------------------------------------
EDGE Newsbytes: http://www.edge.org/newsbytes.html
----------------------------------------------------
EDGE

John Brockman, Editor and Publisher
Russell Weinberger, Associate Publisher
Karla Taylor, Editorial Assistant

Copyright (c) 2008 by EDGE Foundation, Inc. All Rights Reserved.

Published by EDGE Foundation, Inc.,
5 East 59th Street, New York, NY 10022
----------------------------------------------------
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